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Before we embark on our next gas-fired recovery, it might be worthwhile checking in to see how the last one is going. So here is an around the country tour of the #LNG boom starting in Queensland. 1/11
Building 3 plants next to each other on Curtis Island at the same time was outrageously wasteful. @Santos' Gladstone plant has never been full and gas supply will only tighten, so let's not assume new east coast supply will help the local market. 2/11 https://www.afr.com/companies/energy/onethird-of-qlds-lng-industry-at-risk-of-closure-by-2025-report-20190220-h1bhdd
@SantosLtd has just taken over the Darwin LNG plant that is likely to be empty in a few years when gas from Bayu Undan dries up. The partners have had a decade to plan a new supply and all they have is the possibility of Barossa, that is full of CO2. 3/11 https://www.boilingcold.com.au/santos-dirty-big-2b-barossa-bet/
Next door is the $US45B Ichthys LNG run by @Inpex that started its offshore operations knowing it had a raft of safety problems, and this week is slashing its operational staff. Fingers crossed for the safety of the workers. 4/11 https://thewest.com.au/business/energy/secret-docs-reveal-deadly-blast-risk-at-63b-lng-plant-ng-b881069411z
@Shell's $US17B Prelude floating LNG is only 20km from the Ichthys offshore facilities, but of course was developed separately, as inter-company rivalry trumps all again. It was to be a technical marvel but has been a disaster so far. 5/11 https://www.boilingcold.com.au/after-prelude-few-win-from-shells-floating-lng/
@WoodsideEnergy's North West Shelf, the original Australian LNG project, could be up to 40% empty in 7 years, according to @WoodMackenzie. It only has tentative agreements for some small gas supply. Browse, that was to fill NWS, is as dead as a dodo. 6/11 https://www.boilingcold.com.au/woodside-browse-lng-is-dead/
@Chevron wants to sell out of the North West Shelf but finding a buyer for an old, inefficient project with a huge decommissioning liability and no certainty of gas supply may be a bit tricky. 7/11 https://www.boilingcold.com.au/chevrons-north-west-shelf-sales-pitch-missed-8-key-points/
Pluto sits next to NWS. Plans to keep it full and expand with Scarborough gas were uneconomic even before COVID. 8/11 https://www.boilingcold.com.au/woodsides-scarborough-lng-was-uneconomic-before-price-crash-woodmac/
@Chevron is busy trying to get the dodgy welds at its $US54B Gorgon LNG project fixed, but can't seem to do simple things like weld procedures properly. 9/11 https://www.boilingcold.com.au/chevrons-fix-of-gorgon-lng-cracks-to-take-longer/
And of course, there are the infamously late attempts to reinject Gorgon's CO2 under Barrow Island. 10/11 https://www.boilingcold.com.au/chevrons-dodge-on-gorgon-carbon-pollution-rejected/
To complete the tour, @Chevron's $US34B Wheatstone plant is running well but execs admit that Gorgon & Wheatstone will never return more than 10% due to massive costs.
The reality of returns from oil and gas, as opposed to the promise, makes sense of BP's pivot to other energy.
The reality of returns from oil and gas, as opposed to the promise, makes sense of BP's pivot to other energy.
